Question: Should I apply for “Coronavirus” money?
Answer: We are getting a lot of questions about coronavirus funding, so here’s what we do know and what we do not know: (UPDATED 4/28/2020)
As of right now, no one is handing out buckets of money for small businesses without you going through an application process. As we always tell people, there is no such thing as free money – you will need to demonstrate that you are eligible and a good fit for any funding that is out there.
A few sources of substantial funding are out there, and you should consider them:
The Paycheck Protection Program (PPP) is available to most small businesses that have a payroll. This is a 1% loan with a payback of 2 years, which is forgivable if criteria are met, and goes through your local lender.
Update: Funds were recently added to this program after it ran out of money, but those funds are expected to be used quickly. If you are interested, contact your local lender soon.
Source: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses
The Economic Injury Disaster Loan (EIDL) is open to most businesses, agricultural cooperatives, aquaponics enterprises, nurseries, and non-profits. EIDL grants of up to $10,000 will be provided to eligible applicants, after completion of the application, regardless of loan acceptance/denial. Loan rates will be 3.75% for businesses and 2.75% for non-profits.
Update: EIDL was previously not open to most agricultural enterprises, but a change was recently made to that program to allow those agricultural entities to apply and a change was made to add more funds to this program. However, the program is currently backlogged and the agency has indicated that it will work through applications already in the pipeline before reopening the program.
Source: https://www.sba.gov/page/disaster-loan-applications#section-header-0
You can find information on the PPP and EIDL programs from our partners, the Kentucky Small Business Development Centers. https://irp-cdn.multiscreensite.com/128212e0/files/uploaded/SBA%20Loan%20Overview.pdf
The US Department of Agriculture was provided with $9.5 billion as part of the coronavirus stimulus package, but as of the date of this post, we do not yet know how those funds will be allocated for farmers and agribusinesses. It has been reported that funds will be allocated to producers who experienced price declines of a certain level between January and April. However, as of today (4/28/20), we do not have details yet.
There are several grant programs out there for impacted farmers/businesses for $1,000 or less. We will be sending these around on our email lists (Subscribe here) and posting these on our Facebook feed as we see them.
Prior to pursuing any of these options, take the following steps:
For all debts, business and personal, please call the associated lenders and ask what options they have regarding suspension or relief of payments.
Take time to figure up your business and personal expenses for the coming week, month, and three months. This will allow you to understand your funding needs and act quickly when it comes time to apply for current and future relief-focused grants/loans.
Please don’t hesitate to call or email us with any questions you may have regarding these programs. We will be updating this post and sharing updates on our Facebook page as we know more. You can reach us at 859-550-3972 or via email at kcard@kcard.info.
Updated April 28, 2020.